Incentive Travel: Value in Motion

As incentive travel evolves, it’s not just about where winners go—it’s about why it matters

When it comes to incentive travel, there’s one truth that never seems to change: Everyone wants to feel rewarded, recognized and inspired. But how organizations deliver that sense of appreciation is changing fast.

According to Stephanie Harris, president of the Incentive Research Foundation (IRF), 2025 was the year incentive programs truly hit their stride again. And in many ways, it marked a turning point. “We saw a focus on using destinations not previously used for incentives by organizations,” Harris said. “There has also been an increase in discussions around what is critical to program success, as many program owners work with budgets that are not keeping pace with inflation.”

In other words, creativity is having a moment.

Beyond the Beaten Path

After years of playing it safe, incentive planners are branching out and seeking more diversity in destination selection. That means new locations are entering the mix—think smaller islands, lesser-known European regions and secondary cities that might once have been overlooked.

While the Caribbean, Mexico and Western Europe continue to dominate the top spots for North American buyers, the United States has slipped out of the top three. The IRF’s Incentive Travel Index found that 70% of respondents believe the U.S. will see a decline in inbound incentive activity due to recent political events. Meanwhile, 63% said they face no restrictions on long-haul flights, an open invitation to go farther afield.

Read More: IRF Invitational Went All-in on Incentive Event Personalization

That freedom, however, comes with a few logistical headaches. “Direct air access was rated the number one destination ‘must have,’” Harris said. And with airlines continuing to trim group programs and cut routes, getting participants where they need to go can be an uphill climb.

“Air remains one of the biggest areas of frustration and dissatisfaction for program owners,” she added. “There’s a big opportunity for airlines with group offerings and teams that understand the unique needs of the group market.”

Incentive planners, take note: Even the most dream-worthy destination can lose its luster if getting there feels like a full-time job.

The All-Inclusive Advantage

Even as new destinations climb the list, tried-and-true formats like cruises and all-inclusive resorts are holding strong. Their appeal? Predictability, value and built-in experiences that make budget conversations a little easier.

All-inclusives and cruises offer a level of financial transparency that’s incredibly valuable right now. With inflationary pressure squeezing program budgets, knowing what’s covered (and what isn’t) helps planners maximize the sense of abundance without breaking the bank.

Read More: All-in on All-Inclusives

From a participant’s perspective, these formats also deliver something priceless: ease. No tipping calculators, no dinner reservations, no worries. Just clear skies, open seas and cocktails that appear without anyone having to sign a receipt.

It’s a sense of effortless enjoyment that’s hard to replicate elsewhere, and it’s one reason these classic formats continue to anchor incentive calendars around the world.

Measuring the Costs (and Wins)

Behind the turquoise waters and welcome receptions, however, the economics of incentive travel are getting more complex. That’s forcing leaders to make tougher choices—and to get strategic about what really drives motivation.

These conversations are less about cutting corners and more about cutting noise, with a focus “on making informed choices about where dollars are invested for maximum impact,” Harris said.

That might mean scaling back on lavish welcome gifts but upgrading excursions. Or swapping a single headline entertainer for a roster of locally sourced experiences that connect participants more deeply to the destination.

The key question is shifting from “How much can we do?” to “What will they remember?”

From Incentive to Inspiration

As companies navigate tighter budgets, changing policies and a rapidly evolving workforce, incentive travel remains one of the most effective tools for driving performance and loyalty. But success now requires more than glossy destinations and open bars. It requires strategy and a genuine understanding of what motivates people in 2026’s world of work.

The most successful programs will be the ones that combine thoughtful planning with emotional resonance. It’s about crafting experiences that connect people to something bigger, whether that’s their company’s mission, their team or themselves.

It’s also about future-proofing. Getting ahead of economic questions, understanding global shifts and staying nimble enough to adapt when the unexpected happens, all while delivering those unforgettable, only-on-this-trip moments that keep people inspired.

Budgeting for Meaning

As 2026 approaches, Harris expects this mindset to deepen. “Program owners will increasingly be called on to articulate the value of their incentive programs,” she said.

That accountability isn’t new; it tends to resurface whenever the economy gets unpredictable, but it’s more data-driven now than ever, with the focus turned to human outcomes: engagement, loyalty, retention and belonging.

Harris believes the best programs are already leaning into this evolution. “I believe program owners will increasingly focus on the perceived value of their programs via access to experiences attendees would not be able to get on their own and embedding more choice and customization into programs,” she said.

That might mean letting participants choose between a sailing excursion, a cooking class with a local chef or a mindfulness retreat in the hills.

“Program owners will increasingly be called on to articulate the value of their incentive programs.”

–  Stephanie Harris

“Done well, these approaches can make attendees feel rewarded and truly seen, even at lower budget levels,” Harris emphasized.

Incentives, in other words, aren’t about the price tag—they’re about the personal touch.

Geopolitics & Security Factors

Of course, even the most meaningful itineraries can’t escape the realities of a shifting world map. “According to data from the Incentive Travel Index, 51% of program owners reported their programs were impacted by last-minute geopolitical or security restrictions,” Harris said.

Visa delays, border complications and tariffs on imported goods can throw a wrench into even the best-laid plans. Roughly a third of respondents said their programs were affected by challenges transporting goods across borders—an important reminder for anyone shipping branded gifts, displays or stage sets.

The solution? A healthy dose of flexibility.

“Having a backup plan, particularly related to gifting and booth and display shipping, and having some additional dollars set aside in the budget for unexpected expenses will be helpful,” Harris said.

The Art of Adaptability

If there’s a unifying theme running through today’s incentive landscape, it’s adaptability. The best planners are moving away from static templates and toward dynamic frameworks that can bend without breaking.

That might mean contracting backup vendors in case of shipping delays, or working with DMCs who have strong local relationships to troubleshoot last-minute hurdles. It might also mean rethinking traditional recognition structures, offering smaller, more frequent rewards to maintain engagement in between big-ticket trips.

Destination Outlook

Looking ahead, incentive favorites like the Caribbean and Western Europe will continue to shine. But Harris sees growing interest in destinations that balance novelty with accessibility—places that offer both culture and convenience.

The U.S. falling out of the top three for North American buyers reflects a broader confidence in international travel and the appetite for experiences that feel truly different.

In Europe, destinations like Portugal, Croatia and the Greek islands continue to gain traction. In the Caribbean, secondary islands and boutique resorts are drawing attention from planners seeking something fresh yet familiar. And in Latin America, Mexico’s mix of connectivity, safety and all-inclusive luxury keeps it firmly in the rotation.

With 63% of respondents reporting no limits on long-haul travel, far-flung locales are back on the table, at least for now.

As incentive travel continues to evolve, one thing is clear: The future belongs to programs that are intentional, flexible and deeply human—designed not just to impress, but to inspire.

From Incentive to Inspiration

As companies navigate tighter budgets, changing policies and a rapidly evolving workforce, incentive travel remains one of the most effective tools for driving performance and loyalty. But success now requires more than glossy destinations and open bars. It requires strategy and a genuine understanding of what motivates people in 2026’s world of work.

The most successful programs will be the ones that combine thoughtful planning with emotional resonance. It’s about crafting experiences that connect people to something bigger, whether that’s their company’s mission, their team or themselves.

It’s also about futureproofing. Getting ahead of economic questions, understanding global shifts and staying nimble enough to adapt when the unexpected happens, all while delivering those unforgettable, only on this trip moments that keep people inspired.